HARTFORD, Conn., Dec. 29, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of California on behalf of all persons who purchased the publicly traded securities of SeraCare Life Sciences, Inc. (Nasdaq:SRLSE) between May 3, 2005, and December 19, 2005, inclusive (the "Class Period"). Also included are all those who purchased in the secondary offering on May 24, 2005.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. It is alleged that defendants directly participated in an accounting fraud, which materially overstated the Company's financial results in violation of Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint charges that throughout the Class Period: (i) defendants used improper revenue recognition policies and practices; (ii) defendants failed to properly account for and value inventory; (iii) defendants failed to prevent certain Board members from exerting undue influence on the financial reporting process of the audit process; and (iv) defendants failed to maintain adequate internal controls and as a result were unable to ascertain the true financial condition of the Company. On December 20, 2005, SeraCare announced that its independent auditors raised concerns with respect to the Company's financial statements, accounting documentation and the ability to rely on representations of the Company's management. Specifically, the auditor questioned certain of the company's revenue-recognition accounting policies, the valuation of the company's inventory and raised concerns regarding the perception that a few members of the board were exerting "undue influence" on the Company's financial reporting. On this news, SeraCare shares fell from $19.30 to $10.04.
If you are a member of the class, you may, no later than February 20, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website at www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.